A contract between a Korean company and an Indian party should use Indian law drafting for Indian obligations, deal with stamp duty, GST and withholding tax, and contain an arbitration clause with a clear seat. Korea is not a reciprocating territory, so a judgment from a Seoul court needs a new suit in India. An award from a Seoul, Singapore or Indian seated arbitration can be enforced as a New York Convention or domestic award, which is usually far quicker.
- Document route
- Korean notary, then apostille from the Ministry of Foreign Affairs
- Time difference
- IST is 3h30 behind Korea all year (no daylight saving)
- Core law
- Indian Contract Act 1872
- Foreign awards
- Part II, Arbitration Act 1996
Commercial Contracts from South Korea: how it works
We review the Korean draft or prepare the contract in English. For supply and component contracts we focus on specifications, delivery and acceptance, price revision, intellectual property in tooling and designs, and liquidated damages, which Indian courts enforce only as a reasonable pre-estimate of loss. For distribution and dealership contracts we check exclusivity under competition law and termination notice periods. Where the Korean company is the buyer of Indian components, quality and warranty clauses need clear inspection and rejection mechanics.
On disputes, we prefer arbitration with a named institution, such as the Korean Commercial Arbitration Board, a Singapore institution or an Indian institution, and a seat outside India only where enforcement against Indian assets has been considered. We add a right to seek interim relief from Indian courts, clauses on service of notices in India, and a language clause. Contracts signed in Korea are stamped in India within three months of arrival if they will be relied on in India, since unstamped documents cannot be admitted in evidence until duty and penalty are paid.
What clients in South Korea should know
- Korean contracts often include a Korean-language version; state that the English text governs, because Indian courts and arbitrators will rely on it.
- CEPA tariff benefits depend on rules of origin, so supply contracts should allocate who obtains and stands behind the certificate of origin.
- Payments from India to Korea for services or royalties attract Indian withholding tax, and the gross-up clause should say who bears it.
Step by step from South Korea
Video consultation
A call at a time that suits South Korea, after we have read your documents.
Documents signed in South Korea
Korean notary, then apostille from the Ministry of Foreign Affairs
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in South Korea where needed.
The full guide
This page covers what changes when you are in South Korea. For the law, the documents and the step-by-step procedure, read our main page on Commercial Contracts, or see all services for clients in South Korea and the Doing Business in India practice area.
Questions from clients in South Korea
Can we choose Korean law for a contract with an Indian supplier?
Generally yes for international contracts, though Indian mandatory rules on stamp duty, FEMA and competition still apply.
Is an electronic signature from Korea valid in India?
Indian law recognises electronic signatures in many cases, but some documents, such as those affecting immovable property or powers of attorney, still need wet ink signing.
What if the Indian party ignores our arbitration clause and sues in India?
The Indian court must refer the parties to arbitration on an application, if the arbitration agreement is valid and the dispute falls within it.